This episode explores the future of software development and the role of AI in revolutionizing the process. Against the backdrop of existing code-based programming, the conversation introduces Cursor, an AI-powered code editor aiming to shift the paradigm towards intent-based development. More significantly, the discussion delves into the counterintuitive challenges faced in building Cursor, highlighting the unexpected need for custom model development despite initially relying on existing foundation models. For instance, the creation of specialized models for tasks like autocomplete is discussed, showcasing the nuanced approach needed to optimize AI for code generation. As the discussion pivoted to the future of software engineering, the importance of "taste" in defining both the logic and visual aspects of software was emphasized, suggesting a shift from meticulous coding to high-level design. This transition implies that skills like understanding AI capabilities and effectively leveraging them will become increasingly valuable. Finally, the episode touches upon the rapid growth of Cursor and the lessons learned in building and scaling an AI-driven product, emphasizing the importance of product focus and iterative development.